Download - CALIFORNIA SALE-LEASEBACK •••
OFFERING MEMORANDUM
7 INDIVIDUAL ASSETS BELOW MARKET RENTS 15-YEAR NNN LEASES WITH INCREASES
• • • C A L I F O R N I A S A L E - L E A S E B AC K • • •
2www.hanleyinvestment.com
OFFERING MEMORANDUM
EXCLUSIVELY LISTED BY:
Carlos J. Lopez | Senior Vice [email protected]
949.585.7657BRE License # 00980904
Lee T. Csenar | Senior [email protected]
949.585.7636BRE License # 01858335
• • • C A L I F O R N I A S A L E - L E A S E B AC K • • •
3 The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.
The information contained herein does not purport to provide a complete or fully accurate summary of the Properties or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information which prospective buyers may need or desire. All financial projections are based on assumptions relating to the general economy, competition, and other factors beyond the control of the Owner and Broker and, therefore, are subject to material variation. This Marketing Package does not constitute an indication that there has been no change in the business or affairs of the Properties or the Owner since the date of preparation of the information herein. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective buyers.
Neither Owner nor Broker nor any of their respective officers, Agents or principals has made or will make any representations or warranties, express or implied, as to the accuracy or completeness of this Marketing Package or any of its contents, and no legal commitment or obligation shall arise by reason of the Marketing Package or its contents. Analysis and verification of the information contained in the Marketing Package is solely the responsibility of the prospective buyer, with the Property to be sold on an as is, where-is basis without any representations as to the physical, financial or environmental condition of the Property.
Owner and Broker expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or terminate discussions with any party at any time with or without notice. Owner has no legal commitment or obligations to any party reviewing this Marketing Package or making an offer to purchase the Property unless and until such sale of the Property is approved by Owner in its sole discretion, a written agreement for purchase of the Property has been fully delivered, and approved by Owner, its legal counsel and any conditions to the Owner’s obligations thereunder have been satisfied or waived.
This Marketing Package and its contents, except such information which is a matter of public record or is provided in sources available to the public (such contents as so limited herein called the “Contents”), are of a confidential nature. By accepting this Marketing Package, you unconditionally agree that you will hold and treat the Marketing Package and the Contents in the strictest confidence, that you will not photocopy or duplicate the Marketing Package or any part thereof, that you will not disclose the Marketing Package or any of the Contents to any other entity (except in the case of a principal, who shall be permitted to disclose to your employees, contractors, investors and outside advisors retained by you, or to third-party institutional lenders for financing sought by you, if necessary, in your opinion, to assist in your determination of whether or not to make a proposal) without the prior authorization of the Owner or Broker, and that you will not use the Marketing Package or any of the Contents in any fashion or manner detrimental to the interest of the Owner or Broker.
4
TABLE OF CONTENTS
SECTION I
EXECUTIVE SUMMARY Introduction 6
Portfolio Summary 7
Locations Map 8
Tenant Profile 9
Proposed Lease Summary 10
SECTION II
PROPERTIES California City 12
Mojave 13
Huron 14
Orosi 15
Orange Cove 16
Mendota 17
Firebaugh 18
CALIFORNIA CITY
C ALIFORNIA SALE-LEASEBACK7 Individual Assets
Below Market Rent
15-Year NNN Leases with Increases
FIREBAUGHMENDOTAORANGE COVE
OROSIMOJAVE
SECTION I - EXECUTIVE SUMMARY
HURON
6
INTRODUCTION
Hanley Investment Group, on behalf of Family Dollar, Inc. and any related subsidiaries (if applicable) as its exclusive advisor, is pleased to offer for sale the fee-simple interest in 7 individual Family Dollar California Sale-Leasebacks. The Properties will be net leased (NNN) to Family Dollar, a Fortune 300 company with over 8,100 stores in the United States (NYSE: FDO; S&P: BBB-). The Properties are located throughout the central and southern portions of the State of California, with heavy concentrations in California’s central valley, where Family Dollar is the dominant retailer. This Offering provides the exceptional opportunity to acquire multiple properties net-leased to one of the world’s fastest growing retailers.
The Family Dollar California Sale-Leaseback Offering consists of 7 Individual Family Dollar Store Properties which can be purchased individually. The proposed lease terms will be net leased to Family Dollar for a primary term of fifteen years with CPI (Consumer Price Index) increases in year 11 with 10% maximum. In addition, the leases will include four, five-year renewal options (CPI increases each option with 10% maximum). The Offerings feature well below market rents with an average net rental rate of $1.00 per square foot per month.
HIGHLIGHTS
y 7 Properties Available Individually
y Investment Grade Credit (NYSE: FDO; S&P: BBB-)
y New 15-Year Sale-Leasebacks; Corporate Guaranteed Leases
y Rare Increases in Initial Term; Four 5-Year Options with Increases
y NNN Leases; Tenant Pays for Ad Valorem Taxes, Insurance, Utilities, Repairs and Maintenance (including Roof and Structure)
y Below Market Rents; Average $1.00 per Square Foot per Month
y New Construction; Pride of Ownership Opportunity
7 The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.
PORTFOLIO SUMMARY
ADDRESS CITY COUNTY TOTAL SF
YEAR 1 NOI NNN LEASE
TERM INCREASES OPTIONS
9567 California City Blvd. California City Kern 8,334 $105,000 NNN 15 Year 11 - CPI Increase (10% max) Four 5-year @ CPI Increase (10% max)
2343 Highway 58 Mojave Kern 8,453 $104,000 NNN 15 Year 11 - CPI Increase (10% max) Four 5-year @ CPI Increase (10% max)
36301 S. Lassen Ave. Huron Fresno 8,428 $93,000 NNN 15 Year 11 - CPI Increase (10% max) Four 5-year @ CPI Increase (10% max)
12835 Avenue 416 Orosi Tulare 8,366 $103,000 NNN 15 Year 11 - CPI Increase (10% max) Four 5-year @ CPI Increase (10% max)
1150 Park Blvd. Orange Cove Fresno 8,367 $94,000 NNN 15 Year 11 - CPI Increase (10% max) Four 5-year @ CPI Increase (10% max)
766 Derrick Ave. Mendota Fresno 8,437 $103,000 NNN 15 Year 11 - CPI Increase (10% max) Four 5-year @ CPI Increase (10% max)
1020 N. Street Firebaugh Fresno 8,361 $106,000 NNN 15 Year 11 - CPI Increase (10% max) Four 5-year @ CPI Increase (10% max)
8
CALIFORNIA
ARIZONA
NEVADAUTAH
PA
CI
FI
C O
CE
AN
SAN FRANCISCO
SACRAMENTO
LOS ANGELES
PHOENIX
SAN DIEGO
STOCKTON
SAN JOSE
SANTABARBARA
LAS VEGAS
NEWPORTBEACH
YUMATIJUANA MEXICALI
BISHOP
205
205
205
208
2017
2010
2040
2015
2015
101395
395
95
6
93
89
95
93
89
101
99
99
95
SANTA CRUZ
SAN LUISOBISPO CALIFORNIA
CIT Y
MOJAVE
OROSI
FRESNO
ORANGE COVEMENDOTA
FIREBAUGH
HURON
LOCATIONS MAP
N
9 The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.
TENANT PROFILE
Family Dollar (NYSE: FDO; S&P: BBB-) is one of the nation’s fastest growing retailers with over 8,100 stores in rural and urban settings across 46 states. Family Dollar offers a compelling assortment of merchandise for the whole family ranging from household cleaners to name brand foods, from health and beauty aids to toys, from apparel for every age to home fashions, all for everyday low prices. While shoppers can find many items at $1 or less, most items in the store are priced below $10. Family Dollar has recently broadened its grocery offerings, including refrigerated and frozen food, milk and other perishables, as well as more quick-prep and ready-to-eat products while also increasing the number of brand-name goods it carries.
In fiscal 2014, Family Dollar opened 26 new stores and renovated, relocated or expanded 738 stores. Going forward, the fast-growing chain plans to open 375 new stores and renovate, relocate, or expand approximately 775 stores in fiscal 2015 (ends August). Founded in 1958 and headquartered in Matthews, North Carolina, just outside of Charlotte, Family Dollar is a Fortune 300 company, and has been publicly held corporation since 1970.
Company Type: Public NYSE: FDOS&P Credit Rating: BBB- (Investment Grade)Founded: 1959 - Matthews, North CarolinaFiscal Year End: August 20152013 Revenue: $10.49 BillionFortune 500 Ranking: 271Locations: 8,100+Employees: 58,000Websites: www.familydollar.com
10
PROPOSED LEASE SUMMARY
PROPOSED LEASE SUMMARY
Tenant/Guarantor: Family Dollar, Inc.
Rent Commencement: Upon Close of Escrow
Lease Type: NNN
Initial Lease Term: 15 Years
Initial Lease Term Increases: Year 11 - CPI Increase (10% max)
Renewal Options: Four (4) Five (5) Year @ CPI Increase Each Option (10% max)
NNN SUMMARY
Property Taxes: Paid by Tenant
Insurance: Paid by Tenant
Utilities: Paid by Tenant
Repairs and Maintenance: Paid by Tenant
Roof and Structure: Paid by Tenant
11 The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.
12
OFFERING SUMMARY - CALIFORNIA CITY
CALIFORNIA CITY BOULEVARD
HA
CIEND
A B
OU
LEVARD
(Contact Hanley Investment Group for Further Details)
PROPOSED LEASE SUMMARYAddress: 9567 California City Boulevard
California City, CA 93505
Lease Term: New 15 Year Sale-Leaseback
Net Operating Income (NOI): $105,000
Rent per Square Foot per Month: $1.05
Initial Lease Term Increases: Year 11 - CPI Increase (10% max)
Options: Four 5-year @ CPI Increase Each Option (10% max)
Lease Type: NNN
Tenant/Guarantor: Family Dollar, Inc.
BUILDING SUMMARY Total Square Footage: 8,334
Year Built: 2011
Lot Size (Acres): 1.24
Lot Size (Square Feet): 54,014
Parcel Number (APN): 208-381-02
PROPERTY OVERVIEW y Brand New 15-Year Lease with Corporate Guaranty (NYSE: FDO; S&P: BBB-)
y Rare Increase in Year 11; CPI Increase with 10% Maximum
y NNN Lease
y Over 12,000 People within 3 Miles; Household Income Over $59,000 within 1 Mile
y Situated on California City Boulevard near the Main Retail Corridor
y Adjacent Tenants Include AutoZone, AltaOne Credit Union, Dollar General Market, McDonald’s and Rite Aid
CITY HALL
LIBRARY
POLICE DEPARTMENT
13 The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.
OFFERING SUMMARY - MOJAVE
(Contact Hanley Investment Group for Further Details)
PROPOSED LEASE SUMMARYAddress: 2343 Highway 58
Mojave, CA 93502
Lease Term: New 15 Year Sale-Leaseback
Net Operating Income (NOI): $104,000
Rent per Square Foot per Month: $1.03
Initial Lease Term Increases: Year 11 - CPI Increase (10% max)
Options: Four 5-year @ CPI Increase Each Option (10% max)
Lease Type: NNN
Tenant/Guarantor: Family Dollar, Inc.
BUILDING SUMMARY Total Square Footage: 8,453
Year Built: 2013
Lot Size (Acres): 0.87
Lot Size (Square Feet): 37,897
Parcel Number (APN): 236-271-05
PROPERTY OVERVIEW y Brand New 15-Year Lease with Corporate Guaranty (NYSE: FDO; S&P: BBB-)
y Rare Increase in Year 11; CPI Increase with 10% Maximum
y NNN Lease
y Over 25,000 People within 5 Miles; Household Income Over $45,800 within 1 Mile
y Situated at State Route 14 (Connecting to Lancaster and Santa Clarita) and State Route 58 (Connecting to Barstow and Bakersfield)
y Mojave is Home to the Mojave Air and Space Port as well as the Hyundai-Kia Motors California Testing Facilities
14
OFFERING SUMMARY - HURON
11TH STREET
LASSEN
AVEN
UE
(Contact Hanley Investment Group for Further Details)
PROPOSED LEASE SUMMARYAddress: 36301 S. Lassen Avenue
Huron, CA 93234
Lease Term: New 15 Year Sale-Leaseback
Net Operating Income (NOI): $93,000
Rent per Square Foot per Month: $0.92
Initial Lease Term Increases: Year 11 - CPI Increase (10% max)
Options: Four 5-year @ CPI Increase Each Option (10% max)
Lease Type: NNN
Tenant/Guarantor: Family Dollar, Inc.
BUILDING SUMMARY Total Square Footage: 8,428
Year Built: 2012
Lot Size (Acres): 1.01
Lot Size (Square Feet): 43,996
Parcel Number (APN): 075-330-06
PROPERTY OVERVIEW y Brand New 15-Year Lease with Corporate Guaranty (NYSE: FDO; S&P: BBB-)
y Rare Increase in Year 11; CPI Increase with 10% Maximum
y NNN Lease
y Over 6,800 People with Household Income Over $34,300 within 1 Mile
y Located on Lassen Avenue (State Route 269), the Main North/South Thoroughfare in Huron, which Connects to Interstate 5
y The Population of Huron nearly Triples during Harvest Season due to Influx of Farm Workers
HURON ELEMENTARY
SCHOOL
HURON COMMUNITY
PARK
LOS AMIGOS FOOD CENTER
AMIGO MARKET
POLICE DEPARTMENT
CITY HALL
FRESNO COUNTY FIRE STATION
15 The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.
OFFERING SUMMARY - OROSI
AVENUE 416
ROA
D 128
(Contact Hanley Investment Group for Further Details)
PROPOSED LEASE SUMMARYAddress: 12835 Avenue 416
Orosi, CA 93647
Lease Term: New 15 Year Sale-Leaseback
Net Operating Income (NOI): $103,000
Rent per Square Foot per Month: $1.03
Initial Lease Term Increases: Year 11 - CPI Increase (10% max)
Options: Four 5-year @ CPI Increase Each Option (10% max)
Lease Type: NNN
Tenant/Guarantor: Family Dollar, Inc.
BUILDING SUMMARY Total Square Footage: 8,366
Year Built: 2013
Lot Size (Acres): 0.69
Lot Size (Square Feet): 30,056
Parcel Number (APN): 023-101-028
PROPERTY OVERVIEW y Brand New 15-Year Lease with Corporate Guaranty (NYSE: FDO; S&P: BBB-)
y Rare Increase in Year 11; CPI Increase with 10% Maximum
y NNN Lease
y Over 22,500 People and Household Income Over $44,300 within 5 Miles
y Situated at the Main Intersection of Orosi at Avenue 416 (El Monte Way) and Road 128 (State Route 63)
y Located Only 12 Miles from Visalia along Road 128 (State Route 63)
OROSI HIGH SCHOOL
R-N MARKET
GOLDEN VALLEY SCHOOL
EL MONTE SCHOOL
16
OFFERING SUMMARY - ORANGE COVE
PARK BOULEVARD
JACO
BS CEN
TER STREET
(Contact Hanley Investment Group for Further Details)
PROPOSED LEASE SUMMARYAddress: 1150 Park Boulevard
Orange Cove, CA 93646
Lease Term: New 15 Year Sale-Leaseback
Net Operating Income (NOI): $94,000
Rent per Square Foot per Month: $0.94
Initial Lease Term Increases: Year 11 - CPI Increase (10% max)
Options: Four 5-year @ CPI Increase Each Option (10% max)
Lease Type: NNN
Tenant/Guarantor: Family Dollar, Inc.
BUILDING SUMMARY Total Square Footage: 8,367
Year Built: 2013
Lot Size (Acres): 0.84
Lot Size (Square Feet): 36,590
Parcel Number (APN): 375-050-11
PROPERTY OVERVIEW y Brand New 15-Year Lease with Corporate Guaranty (NYSE: FDO; S&P: BBB-)
y Rare Increase in Year 11; CPI Increase with 10% Maximum
y NNN Lease
y Over 13,900 People and Household Income Over $41,800 within 5 Miles
y Situated on Park Boulevard, the Main Thoroughfare in Orange Cove
y Located Less than 25 Miles from Both Fresno to the North and Visalia to the South
AC MARKET
12TH STREET
CITRUS MINI MART
LIBRARY
CITY HALL
UNITED HEALTH CENTERS OF SAN JOAQUIN VALLEY
MCCORD ELEMENTARY
SCHOOL
17 The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.
OFFERING SUMMARY - MENDOTA
BELMONT AVENUE
DERRICK
AVEN
UE
(Contact Hanley Investment Group for Further Details)
PROPOSED LEASE SUMMARYAddress: 766 Derrick Avenue
Mendota, CA
Lease Term: New 15 Year Sale-Leaseback
Net Operating Income (NOI): $103,000
Rent per Square Foot per Month: $1.02
Initial Lease Term Increases: Year 11 - CPI Increase (10% max)
Options: Four 5-year @ CPI Increase Each Option (10% max)
Lease Type: NNN
Tenant/Guarantor: Family Dollar, Inc.
BUILDING SUMMARY Total Square Footage: 8,437
Year Built: 2012
Lot Size (Acres): 1.11
Lot Size (Square Feet): 48,352
Parcel Number (APN): 012-190-63
PROPERTY OVERVIEW y Brand New 15-Year Lease with Corporate Guaranty (NYSE: FDO; S&P: BBB-)
y Rare Increase in Year 11; CPI Increase with 10% Maximum
y NNN Lease
y 12,500 People and Household Income of $34,000 within 3 Miles
y Situated on Derrick Avenue (State Route 33), the Main North/South Thoroughfare in Mendota, which Connects to Interstate 5
y Adjacent to Mendota High School, Located at the Signalized Intersection of Derrick Avenue and Belmont Avenue
MENDOTA HIGH SCHOOL
MCCABE ELEMENTARY
SCHOOL
MENDOTA FOOD CENTER
MENDOTA JR HIGH SCHOOL
18
OFFERING SUMMARY - FIREBAUGH
13TH STREET
N STREET
(Contact Hanley Investment Group for Further Details)
PROPOSED LEASE SUMMARYAddress: 1020 N Street
Firebaugh, CA 93622
Lease Term: New 15 Year Sale-Leaseback
Net Operating Income (NOI): $106,000
Rent per Square Foot per Month: $1.06
Initial Lease Term Increases: Year 11 - CPI Increase (10% max)
Options: Four 5-year @ CPI Increase Each Option (10% max)
Lease Type: NNN
Tenant/Guarantor: Family Dollar, Inc.
BUILDING SUMMARY Total Square Footage: 8,361
Year Built: 2013
Lot Size (Acres): 0.69
Lot Size (Square Feet): 30,056
Parcel Number (APN): 008-010-23S
PROPERTY OVERVIEW y Brand New 15-Year Lease with Corporate Guaranty (NYSE: FDO; S&P: BBB-)
y Rare Increase in Year 11; CPI Increase with 10% Maximum
y NNN Lease
y Over 8,250 People and Household Income Over $43,500 within 3 Miles
y Situated along N Street (State Route 33), the Main Thoroughfare in Firebaugh, which connects to Interstate 5
y Located Approximately 30 Miles from the City of Fresno
FIREBAUGH MARKET
FIREBAUGH AIRPORT
ARTHUR MILLS INTERMEDIATE
SCHOOL
Prepared for 7/18/2015
(562) [email protected]: 01430358
Properties for Sale
Presented by Jesse LeeAmerica Realty Orange County
Property Details
Price $1,808,696
Building Size 8,453 SF
Price/SF $213.97 /SF
Property Type Retail
Property Sub-type Retail Pad
Additional Sub-types Free Standing BldgRetail (Other)
Property Use Type Investment
Cap Rate 5.75%
Tenancy Single
Status Active
Property Notes
1 2343 Highway 58, Mojave, CA 93501
Property Description
New 15-Year Sale-Leaseback; Corporate Guaranteed LeaseRare Increases in Initial Term; Four 5-Year Options with IncreasesNNN Lease; Tenant Pays for AdValorem Taxes, Insurance, Utilities, Repairs and Maintenance (including Roof & Structure)Investment Grade Credit (NYSE: FDO; S&P: BBB-)Below Market Rent;Average $1.02 per Square Foot per MonthNew Construction; Pride of Ownership Opportunity
Location Description
Other California Family Dollar Sale-Leaseback Properties include: California City | 9567 California City BoulevardMojave | 2343 Highway 58 Huron | 36301 S.Lassen AvenueOrosi | 12835 Avenue 416Orange Cove | 1150 Park BoulevardMendota | 766 Derrick AvenueFirebaugh | 1020 N. Street